There is no doubt about it; this is one tough market to read. After what first appeared to be the beginning of a well-deserved pullback in the making in January, buyers have swooped in to buy the dip, and the major indices are once again challenging their recent highs.
After falling below its 50-day moving average last month, the Dow Jones bounced back to regain that level in early February and has been climbing higher ever since. The market was able to find investors that were ready and willing to add to long-side exposure just as many CNBC pundits were starting to question the sustainability of the prevailing uptrend.
However, a rising tide for the market may not lift all boats this year, as it seemed to do in 2013. We have already seen a higher level of volatility over the past month than we have for a while, and in such an economic climate, I recommended that investors concentrate on stable, blue-chip dividend stocks with a long history of paying investors solid, dependable dividends.
For steady and reliable income, the dividend stocks of the Dow are your best bet. These well-established, best-of-breed companies can almost guarantee that their dividends will hit your account each and every pay date.
The top 10 highest-yielding Dow dividend stocks, or “Dogs of the Dow,” pay out sizable yields ranging from 3.09% to 5.63%, and they’re often less susceptible to market downtrends, which makes them ideal holdings when so many investors are on edge.
Here are the top 10 Dow dividend stocks by yield for February: